(a) Subject to the conditions set forth in this section, the Board of Trustees shall annually a cost of living adjustment, the amount of which shall be determined as of each September 30. The amount of the cost of living adjustment shall be equal to the actuarial present value of future pension payments to current pensioners multiplied by the positive difference, if any, between the rate of investment return and 8%. The actuary shall determine whether there may be a cost of living adjustment based on the following factors:
(1) The actuary for the Pension Fund shall determine the rate of investment return on the Pension Fund assets during the 12-month period ending each September 30. The rate determined shall be the rate reported in the most recent actuarial report submitted pursuant to F.S. Chapter 112, Part VII.
(2) The actuary for the Pension Fund shall, as of September 30, determine the actuarial present value of future pension payments to current pensioners. The actuarial present values shall be calculated using an interest rate of 8% a year compounded annually, and a mortality table approved by the Board of Trustees and as used in the most recent actuarial report submitted pursuant to F.S. Chapter 112, Part VII. This will be the pool of funds available to fund the cost of living adjustment.
(3) If the actuary determines there may be a cost of living adjustment, the Board of Trustees shall authorize such a distribution unless the administrative expenses of distribution exceed the amount available for the distribution.
(4) The cost of living adjustment shall be funded only if the present value of the pool of funds does not exceed the net actuarial experience accumulated from all sources of gains and losses.
(b) Cost of living adjustments will be made to pensioners, including DROP members, and beneficiaries, who are referred to as eligible persons.
(c) The cost of living adjustment shall be allocated among eligible persons based upon the participant’s years of service in the proportion that the participants years of service bear to the aggregate amount of years of service of all eligible persons. Allocations for beneficiaries will be in proportion that the beneficiary benefit bears to the retiree benefit Maximum service credits shall be 20 years. Minimum allocations for duty disability pensioners shall be based on 13.33 years of service.
(d) The cost of living shall be made as of July 1, 2001 and each July 1 thereafter. Each eligible person shall be paid his or her allocated portion from the preceding September 30. Eligible persons must be retired for one year from September 30 to receive a cost of living adjustment. A pensioner’s estate is entitled to a pro-rata share of the deceased retirant’s cost of living adjustment based on a number of months that the deceased retirant received a pension during the year ending the September 30 prior to the retirant’s death.
(Ord. No. 10-005, § 2, 2-2-10)
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